Whitehall eases rules for PFI schemes in housing

8 Aug 02
Moves to make it easier for housing departments to set up Private Finance Initiative schemes have been announced by the government.

09 August 2002

In future, contractors that take over a council's housing management services will be able to sub-contract some of the work, which would facilitate greater involvement by the private sector.

Under the 1985 Housing Act, councils can only enter into management agreements with a single agent or contractor. Housing minister Jeff Rooker said the aim of the consultation paper, Delegation of housing management, launched on August 2, was to make it easier for councils to achieve the decent homes target by 2010.

'Clearing away unnecessary restrictions will make it easier for them to go into partnership with the private sector to provide long-term, good-quality housing and services to council tenants,' he added.

The PFI has been very slow to take off in housing. The eight local authorities that began pathfinder schemes in 1999 are still waiting to sign contracts. A further 11 PFI housing projects were chosen by the Office of the Deputy Prime Minister earlier this year.

Gwyneth Taylor, programme manager for housing at the Local Government Association, said that the PFI was even more complex than an arm's-length management organisation or a stock transfer.

'The PFI has not had the same degree of political backing from central government,' she said. 'It's the first of a series of things that the government will be doing to make it easier.'

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